Current Accounts V Nisas

Monobloc

I have retired a few months ago.I have a modest pension income.At the end of the month after outgoings,I don't have a lot of spare cash to save,ie put 'new money'into say Nisas.I have a couple of Nisas that I need to move due to poor interest rates.
Any Nisas that allow transfers in,pay very poor rates.I am aware that multiple current accounts seems the way to go nowadays.I have a couple up and running at this time and plan to add to them, bearing in mind that opening to many current accounts too fast apparently affects your credit rating.
According to a member of staff at my local Nationwide,I would need to close my online Nisa myself online,move the cash to my Flexaccount,and then move the cash bit by bit to say various current accounts that I set up.
I realise that after the money appears in the Flexaccount,and then moves onwards, any subsequent interest is taxable.
I know the cardinal rule was never to close an Isa/Nisa yourself,but as considering my circumstances,ie no appreciable 'new money' to invest,and a fair amount of 'old money' to move about,this strategy was ok.If,at a future date,I want to open a new Nisa and move the money back, then the new £15k allowance would allow me to build the Nisa balance up quickly over several years.Any advice please.

Vortigern

Go for the current accounts before considering ISAs, assuming that you're not a higher rate taxpayer. Read the terms and conditions to ensure that you meet the requirements for funding and direct debits.

If you are not a taxpayer, use HMRC Form R85 to have your interest paid gross.

Monobloc

Thanks for the advice Vortigern.What about a joint current account where one name pays tax and the other doesn't.I take it that only half the interest is taxed?.

colsten

Yes, if one of you has registered for tax free interest with the bank.

pip895

If the investment is for long term, have you considered putting some of it in a S&S nisa? There is so much free advice on line - it is very easy to do and is about the only thing giving reasonable yields at the moment.
With a pretty conservative portfolio of funds I made 18% last year and stand on about 5% so far this year. Another advantage is - you can keep it all under the nisa wrapper and even move it back into cash when/if rates improve.

Monobloc

pip895 wrote: »

If the investment is for long term, have you considered putting some of it in a S&S nisa? There is so much free advice on line - it is very easy to do and is about the only thing giving reasonable yields at the moment.
With a pretty conservative portfolio of funds I made 18% last year and stand on about 5% so far this year. Another advantage is - you can keep it all under the nisa wrapper and even move it back into cash when/if rates improve.

Thanks for the advice.Leery of S&S.Got my fingers well burnt with HBOS.Got some Aviva shares.Thinking of selling these.Not sure how the escalating situation in the Ukraine is going to impact on the stock market.

Monobloc

colsten wrote: »

Yes, if one of you has registered for tax free interest with the bank.

Thanks for the advice.

jimjames

Monobloc wrote: »

Thanks for the advice.Leery of S&S.Got my fingers well burnt with HBOS.Got some Aviva shares.Thinking of selling these.Not sure how the escalating situation in the Ukraine is going to impact on the stock market.

It's always a shame when investing way above risk profile then puts someone off investment again. Single company shares are high risk as you found out but a balanced portfolio should never drop like HBOS did.

Archi_Bald

If the thing had never been called "stocks and shares" ISA, but something like "investment" ISA, may be people would not think they need to buy shares in an ISA. But we are where we are.

Monobloc

thanks jimjames and Archi Bald for your replies.